Prime Minister Narendra Modi’s government has marked its 12 years since it came to power in the centre in 2014. During his tenure, various development projects and initiatives have been launched to foster growth in every sector with the aim of making India a 5 trillion economy. These results can be seen in India's economy, which continued its strong growth trajectory in FY 2025-26, with the country's Gross Domestic Product (GDP) at current prices surpassing Rs 345 lakh crore, reflecting sustained momentum driven by reforms, digital transformation, exports and industrial expansion. According to official data, India has emerged as one of the fastest-growing major economies, attracting increasing global attention. The government has also revised the base year for GDP calculations to 2022-23 to better reflect the current economic structure. The country's economic rise has been particularly significant over the past decade. While it took nearly 60 years after Independence for India to become a $1 trillion economy, the nation has rapidly expanded from a $2 trillion economy in 2014 to over $4 trillion today. If the current pace continues, India is expected to achieve the $5 trillion milestone within the next two years. "Today, India’s economy is moving forward rapidly. Now, India does not avoid challenges; it confronts them. Amidst all the turmoil in the world, India has kept up the speed of its progress," PM Modi said.&nbsp;Also read: <a href="https://www.wionews.com/india-news/modi-govt-12-years-how-india-s-shift-to-zero-tolerance-on-terrorism-reshaped-national-security-1781002708397">12 Years of Modi Govt: How India’s shift to zero tolerance on terrorism reshaped national security</a><h3>Growth in electronics sector</h3>India's growing economic influence is also being recognised globally. According to the World Bank, the country has become the second-largest contributor to global GDP growth. The electronics sector has emerged as a key driver of industrial growth. Electronics production has increased sixfold from Rs 1.9 lakh crore to Rs 11.3 lakh crore, while exports have surged eightfold from Rs 0.38 lakh crore to Rs 3.3 lakh crore. More than 25 lakh jobs have been created in the sector, supported by the Production Linked Incentive (PLI) scheme, which has helped position India as a global manufacturing hub. India's exports reached a record Rs 79 lakh crore in FY26, strengthening manufacturing activity and employment generation. Foreign exchange reserves stood at Rs 67 lakh crore, enough to cover 11 months of imports and 94 per cent of external debt, providing a strong buffer against global economic uncertainties.<h3>Tax slab rationalisation</h3>The government also highlighted next-generation reforms aimed at easing the tax burden on citizens. Tax slab rationalisation and GST simplification have benefited the middle class, boosting domestic consumption by nearly Rs 2 lakh crore and supporting greater economic formalisation through digital payments. Meanwhile, investments worth Rs 1.64 lakh crore have been mobilised under the Semicon India Programme. Twelve semiconductor projects across six states have received approval, laying the foundation for a robust domestic chip manufacturing ecosystem. In addition, public sector banks reported a record profit of nearly Rs 2 lakh crore in FY26, reflecting improved financial stability. Additionally, over 25 crore people have reportedly moved out of poverty, contributing to the rise of a new middle class and expanding domestic consumption. The Unified Pension Scheme, approved in August 2024, is also expected to benefit 23 lakh government employees.<h3>Industrial growth</h3>In the industrial and manufacturing domain, the electronics sector has seen a major production revolution, surging by 500 per cent from Rs 1.9 lakh crore in 2014 to over Rs 11 lakh crore by 2026, alongside a 700 per cent increase in electronics exports to over Rs 3 lakh crore. This momentum is heavily driven by mobile manufacturing, which grew 28 times to reach Rs 5.5 lakh crore, while mobile phone exports skyrocketed 163 times to Rs 2.6 lakh crore. Simultaneously, heavy industry expanded, with crude steel production capacity doubling from 109.85 million tonnes in 2014-15 to 220.3 million tonnes in 2025-26. Financially, macro stability has improved as general CPI-based inflation dropped from an average of 9.84 per cent (2011-2014) to 4.7 per cent (2014-2026). Public wealth and governance have also seen structural gains: India's stock market capitalisation crossed Rs 410 lakh crore in March 2026, foreign remittances hit a global high of Rs 13 lakh crore in FY25-26, and digital public infrastructure successfully secured over Rs 51 lakh crore in direct benefit transfers while preventing Rs 4.3 lakh crore in leakages. &nbsp;

India's GDP crossed Rs 345 lakh crore in FY26, cementing its status as a $4+ trillion economy. Driven by a massive electronics boom, record exports of Rs 79 lakh crore, and key tax reforms, over 25 crore people have successfully moved out of poverty.

Prime Minister Narendra Modi’s government has marked its 12 years since it came to power in the centre in 2014. During his tenure, various development projects and initiatives have been launched to foster growth in every sector with the aim of making India a 5 trillion economy. These results can be seen in India's economy, which continued its strong growth trajectory in FY 2025-26, with the country's Gross Domestic Product (GDP) at current prices surpassing Rs 345 lakh crore, reflecting sustained momentum driven by reforms, digital transformation, exports and industrial expansion. According to official data, India has emerged as one of the fastest-growing major economies, attracting increasing global attention. The government has also revised the base year for GDP calculations to 2022-23 to better reflect the current economic structure. The country's economic rise has been particularly significant over the past decade. While it took nearly 60 years after Independence for India to become a $1 trillion economy, the nation has rapidly expanded from a $2 trillion economy in 2014 to over $4 trillion today. If the current pace continues, India is expected to achieve the $5 trillion milestone within the next two years. "Today, India’s economy is moving forward rapidly. Now, India does not avoid challenges; it confronts them. Amidst all the turmoil in the world, India has kept up the speed of its progress," PM Modi said. Also read: 12 Years of Modi Govt: How India’s shift to zero tolerance on terrorism reshaped national security Growth in electronics sector India's growing economic influence is also being recognised globally. According to the World Bank, the country has become the second-largest contributor to global GDP growth. The electronics sector has emerged as a key driver of industrial growth. Electronics production has increased sixfold from Rs 1.9 lakh crore to Rs 11.3 lakh crore, while exports have surged eightfold from Rs 0.38 lakh crore to Rs 3.3 lakh crore. More than 25 lakh jobs have been created in the sector, supported by the Production Linked Incentive (PLI) scheme, which has helped position India as a global manufacturing hub. India's exports reached a record Rs 79 lakh crore in FY26, strengthening manufacturing activity and employment generation. Foreign exchange reserves stood at Rs 67 lakh crore, enough to cover 11 months of imports and 94 per cent of external debt, providing a strong buffer against global economic uncertainties. Tax slab rationalisation The government also highlighted next-generation reforms aimed at easing the tax burden on citizens. Tax slab rationalisation and GST simplification have benefited the middle class, boosting domestic consumption by nearly Rs 2 lakh crore and supporting greater economic formalisation through digital payments. Meanwhile, investments worth Rs 1.64 lakh crore have been mobilised under the Semicon India Programme. Twelve semiconductor projects across six states have received approval, laying the foundation for a robust domestic chip manufacturing ecosystem. In addition, public sector banks reported a record profit of nearly Rs 2 lakh crore in FY26, reflecting improved financial stability. Additionally, over 25 crore people have reportedly moved out of poverty, contributing to the rise of a new middle class and expanding domestic consumption. The Unified Pension Scheme, approved in August 2024, is also expected to benefit 23 lakh government employees. Industrial growth In the industrial and manufacturing domain, the electronics sector has seen a major production revolution, surging by 500 per cent from Rs 1.9 lakh crore in 2014 to over Rs 11 lakh crore by 2026, alongside a 700 per cent increase in electronics exports to over Rs 3 lakh crore. This momentum is heavily driven by mobile manufacturing, which grew 28 times to reach Rs 5.5 lakh crore, while mobile phone exports skyrocketed 163 times to Rs 2.6 lakh crore. Simultaneously, heavy industry expanded, with crude steel production capacity doubling from 109.85 million tonnes in 2014-15 to 220.3 million tonnes in 2025-26. Financially, macro stability has improved as general CPI-based inflation dropped from an average of 9.84 per cent (2011-2014) to 4.7 per cent (2014-2026). Public wealth and governance have also seen structural gains: India's stock market capitalisation crossed Rs 410 lakh crore in March 2026, foreign remittances hit a global high of Rs 13 lakh crore in FY25-26, and digital public infrastructure successfully secured over Rs 51 lakh crore in direct benefit transfers while preventing Rs 4.3 lakh crore in leakages.

India's GDP crossed Rs 345 lakh crore in FY26, cementing its status as a $4+ trillion economy. Driven by a massive electronics boom, record exports of Rs 79 lakh crore, and key tax reforms, over 25 crore people have successfully moved out of poverty.

12 years of Modi govt: How India became $4 trillion economy and set its sights on $5 tillion

The State Bank of India (SBI) said on Tuesday that India's GDP is likely to grow by about 8.1 per cent in the third quarter of the current financial year (FY26), indicating strong growth momentum. The report noted that despite global challenges, the Indian economy has shown resilience, supported by strong domestic demand and consistent economic activity across multiple sectors.&nbsp;According to a report in the news agency ANI, the SBI said "we expect Q3FY26 real GDP growth of closer to 8.1 per cent". Based on the SBI report, high-frequency economic indicators point to steady economic activity during the third quarter of FY26. Rural consumption has also remained strong, supported by encouraging trends in both agricultural and non-agricultural activities.&nbsp;Similarly, urban consumption has slowly improved, aided by fiscal support and higher spending since the most recent festive season. The first advance estimates show India's GDP growth at 7.4 per cent in FY26, largely driven by domestic demand.<h3>FY26 GDP are scheduled for release on February 27, 2026</h3>The report underlined that household consumption remains a key pillar of economic growth, even as uncertainties persist in the global economy. It also noted that the second advance estimates for FY26 GDP are scheduled for release on February 27, 2026. These updated figures will include additional data and revisions, and GDP numbers for the first and second quarters are expected to be revised due to a change in the base year.&nbsp;India has refreshed its GDP base year, updating it from 2011-12 to 2022-23, including the new series scheduled for release on February 27, 2026. The report also indicated that it is very hard to predict the direction of revisions in the GDP data.&nbsp;The purpose of revising the base year is to better reflect the current structure of the Indian economy, that include changes such as the growing role of digital commerce and the services sector. Additionally, the base year for the Consumer Price Index (CPI) of India was updated to 2024, which will assist in a more precise measure of inflation based on current consumption patterns. &nbsp;Also read: <a href="https://www.wionews.com/india-news/what-happens-to-india-s-18-tariff-after-scotus-scraps-trump-reciprocal-duties-here-s-what-the-potus-said-nothing-happens-1771648834475">What happens to India’s 18% tariff after SCOTUS scraps Trump reciprocal duties? Here’s what the POTUS said</a>

The purpose of revising the base year is to better reflect the current structure of the Indian economy, that include changes such as the growing role of digital commerce and the services sector.

The State Bank of India (SBI) said on Tuesday that India's GDP is likely to grow by about 8.1 per cent in the third quarter of the current financial year (FY26), indicating strong growth momentum. The report noted that despite global challenges, the Indian economy has shown resilience, supported by strong domestic demand and consistent economic activity across multiple sectors. According to a report in the news agency ANI, the SBI said "we expect Q3FY26 real GDP growth of closer to 8.1 per cent". Based on the SBI report, high-frequency economic indicators point to steady economic activity during the third quarter of FY26. Rural consumption has also remained strong, supported by encouraging trends in both agricultural and non-agricultural activities. Similarly, urban consumption has slowly improved, aided by fiscal support and higher spending since the most recent festive season. The first advance estimates show India's GDP growth at 7.4 per cent in FY26, largely driven by domestic demand. FY26 GDP are scheduled for release on February 27, 2026 The report underlined that household consumption remains a key pillar of economic growth, even as uncertainties persist in the global economy. It also noted that the second advance estimates for FY26 GDP are scheduled for release on February 27, 2026. These updated figures will include additional data and revisions, and GDP numbers for the first and second quarters are expected to be revised due to a change in the base year. India has refreshed its GDP base year, updating it from 2011-12 to 2022-23, including the new series scheduled for release on February 27, 2026. The report also indicated that it is very hard to predict the direction of revisions in the GDP data. The purpose of revising the base year is to better reflect the current structure of the Indian economy, that include changes such as the growing role of digital commerce and the services sector. Additionally, the base year for the Consumer Price Index (CPI) of India was updated to 2024, which will assist in a more precise measure of inflation based on current consumption patterns. Also read: What happens to India’s 18% tariff after SCOTUS scraps Trump reciprocal duties? Here’s what the POTUS said

The purpose of revising the base year is to better reflect the current structure of the Indian economy, that include changes such as the growing role of digital commerce and the services sector.

India’s Q3 FY26 GDP growth is likely at 8.1% amid strong domestic demand: SBI

India has significantly increased its financial commitment to fighting climate change, with spending on climate action rising from 3.7 per cent of the Gross Domestic Product (GDP) six years ago to nearly 5.6 per cent today. Union Finance Minister Nirmala Sitharaman shared these figures while speaking at the 'Degrees of Instability: Climate Security in a Warming World' town hall in Munich, Germany, on Saturday. She emphasised that India is not merely waiting for international aid but is proactively investing its own resources to meet environmental goals. "India has increased its commitment to climate action. We were at something like 3.7 per cent of our GDP six years ago... but today, we are somewhere close to 5.6 per cent. So more than doubled in a matter of six years," the Finance Minister stated. She noted that while India continues to seek global technology and funds, it has moved forward with its own money to achieve its nationally determined commitments. She also highlighted the challenges faced by other regions, noting that many African countries may struggle to reach such high levels of spending due to their own economic limitations. Beyond spending, Sitharaman called for a balanced approach that focuses as much on resilience and adaptation as it does on emission control. She warned that failing to focus on adaptation could put human lives and livestock at risk. The Finance Minister argued that the global community must adopt a "polluter pays" principle, where the cost of climate action is shared fairly based on a country's historical contribution to emissions. "As much attention we give to emission control, we need to look at resilience and adaptation. Second, technologies will have to talk to each other. And third, differentiated treatment for paying for it. It cannot be that countries which have contributed less to emissions are made to pay equally," she said. Detailing India's domestic efforts, Sitharaman pointed out that the country is well ahead of its renewable energy targets, having achieved two-thirds of its commitments four years earlier than planned. She also mentioned that the Union Budget 2026-27 provides specific funding and incentives for carbon capture strategies. These technologies are being encouraged across the mainland and in remote areas to help businesses reduce their carbon footprint while supporting India's transition to a greener economy.&nbsp;Disclaimer: This story has been published from a news agency feed with minimal edits to adhere to WION's style guide. The headline may have been changed to better reflect the content of the story or to make it more suitable for WION audience.

 Union Finance Minister Nirmala Sitharaman emphasised that India is not merely waiting for international aid but is proactively investing its own resources to meet environmental goals.

India has significantly increased its financial commitment to fighting climate change, with spending on climate action rising from 3.7 per cent of the Gross Domestic Product (GDP) six years ago to nearly 5.6 per cent today. Union Finance Minister Nirmala Sitharaman shared these figures while speaking at the 'Degrees of Instability: Climate Security in a Warming World' town hall in Munich, Germany, on Saturday. She emphasised that India is not merely waiting for international aid but is proactively investing its own resources to meet environmental goals. "India has increased its commitment to climate action. We were at something like 3.7 per cent of our GDP six years ago... but today, we are somewhere close to 5.6 per cent. So more than doubled in a matter of six years," the Finance Minister stated. She noted that while India continues to seek global technology and funds, it has moved forward with its own money to achieve its nationally determined commitments. She also highlighted the challenges faced by other regions, noting that many African countries may struggle to reach such high levels of spending due to their own economic limitations. Beyond spending, Sitharaman called for a balanced approach that focuses as much on resilience and adaptation as it does on emission control. She warned that failing to focus on adaptation could put human lives and livestock at risk. The Finance Minister argued that the global community must adopt a "polluter pays" principle, where the cost of climate action is shared fairly based on a country's historical contribution to emissions. "As much attention we give to emission control, we need to look at resilience and adaptation. Second, technologies will have to talk to each other. And third, differentiated treatment for paying for it. It cannot be that countries which have contributed less to emissions are made to pay equally," she said. Detailing India's domestic efforts, Sitharaman pointed out that the country is well ahead of its renewable energy targets, having achieved two-thirds of its commitments four years earlier than planned. She also mentioned that the Union Budget 2026-27 provides specific funding and incentives for carbon capture strategies. These technologies are being encouraged across the mainland and in remote areas to help businesses reduce their carbon footprint while supporting India's transition to a greener economy. Disclaimer: This story has been published from a news agency feed with minimal edits to adhere to WION's style guide. The headline may have been changed to better reflect the content of the story or to make it more suitable for WION audience.

&nbsp;Union Finance Minister Nirmala Sitharaman emphasised that India is not merely waiting for international aid but is proactively investing its own resources to meet environmental goals.

India doubles climate action spending in 6 years, raises to nearly 6% of GDP: Finance Minister

India on Wednesday forecast economic growth of 7.4 per cent for the 2025–26 fiscal year, highlighting the resilience of Asia’s third-largest economy despite a global slowdown and tight financial conditions amid tight tariff pressure under US President Donald Trump.&nbsp;According to a report in ET, the estimate is marginally higher than the Reserve Bank of India's latest projection of 7.3 per cent, and exceeds last year's 6.5 per cent growth. Nominal GDP, which includes inflation, is expected to moderate to 8 per cent for this fiscal year from 9.7 per cent a year earlier. These numbers will form the base ‍for ⁠the ⁠federal union budget due to be announced on February 1.&nbsp;In the second quarter of FY26, India’s economic momentum picked up pace with GDP growth growing to a six-quarter high of 8.2 per cent, improving on the 7.8 per cent improving in the April–June quarter. In the last two fiscals, India had recorded growth of 6.5 per cent and 9.2 per cent.<h3>The economy of India remains robust</h3>The data indicated that the economy of India remains robust at a time of global uncertainty, supported by a resilient services sector, raising investment and focused government spending. Higher industrial output, improved credit availability and continued structural reforms are helping sustain growth, keeping India among Asia’s fastest-growing major economies despite mounting external challenges.&nbsp;The government came up with the income tax relief for the middle class and lowered GST rates during the fiscal year across a wide range of products from September 22, prompting to ease the prices at the retail level. Industry executives stated that the twin measures assisted in reviving demand by including more disposable income in the hands of consumers and reducing the everyday cost of goods.&nbsp;The data also showed that real Gross Value Added (GVA) is projected to rise by 7.3 per cent in FY26, compared with 6.4 per cent in FY25. Meanwhile, nominal GVA growth is expected to slow to 7.7 per cent this fiscal from 9.3 per cent in the previous year. Government expenditure is forecast to increase by 5.2 per cent in 2025–26, up sharply from a 2.3 per cent rise last year.

The estimate is marginally higher than the Reserve Bank of India's latest projection of 7.3 per cent, and exceeds last year's 6.5 per cent growth. Nominal GDP, which includes inflation, is expected to moderate to 8 per cent for this fiscal year from 9.7 per cent a year earlier.

India on Wednesday forecast economic growth of 7.4 per cent for the 2025–26 fiscal year, highlighting the resilience of Asia’s third-largest economy despite a global slowdown and tight financial conditions amid tight tariff pressure under US President Donald Trump. According to a report in ET, the estimate is marginally higher than the Reserve Bank of India's latest projection of 7.3 per cent, and exceeds last year's 6.5 per cent growth. Nominal GDP, which includes inflation, is expected to moderate to 8 per cent for this fiscal year from 9.7 per cent a year earlier. These numbers will form the base ‍for ⁠the ⁠federal union budget due to be announced on February 1. In the second quarter of FY26, India’s economic momentum picked up pace with GDP growth growing to a six-quarter high of 8.2 per cent, improving on the 7.8 per cent improving in the April–June quarter. In the last two fiscals, India had recorded growth of 6.5 per cent and 9.2 per cent. The economy of India remains robust The data indicated that the economy of India remains robust at a time of global uncertainty, supported by a resilient services sector, raising investment and focused government spending. Higher industrial output, improved credit availability and continued structural reforms are helping sustain growth, keeping India among Asia’s fastest-growing major economies despite mounting external challenges. The government came up with the income tax relief for the middle class and lowered GST rates during the fiscal year across a wide range of products from September 22, prompting to ease the prices at the retail level. Industry executives stated that the twin measures assisted in reviving demand by including more disposable income in the hands of consumers and reducing the everyday cost of goods. The data also showed that real Gross Value Added (GVA) is projected to rise by 7.3 per cent in FY26, compared with 6.4 per cent in FY25. Meanwhile, nominal GVA growth is expected to slow to 7.7 per cent this fiscal from 9.3 per cent in the previous year. Government expenditure is forecast to increase by 5.2 per cent in 2025–26, up sharply from a 2.3 per cent rise last year.

The estimate is marginally higher than the Reserve Bank of India's latest projection of 7.3 per cent, and exceeds last year's 6.5 per cent growth. Nominal GDP, which includes inflation, is expected to moderate to 8 per cent for this fiscal year from 9.7 per cent a year earlier.

India projects strong 7.4% GDP growth for FY26 despite tariff row, outpacing RBI forecast

India's benchmark <a href="https://www.wionews.com/business-economy/sensex-jumps-258-points-nifty-reclaims-15000-level-366253">Sensex</a> nosedived 1,000 points in early trade on Friday as bank stocks ICICI and HDFC including Reliance Industries showed negative trend.

The Sensex fell further falling over 1,700 points as IndusInd Bank, Axis Bank, and Bajaj Finance dragged down the markets. The Sensex was trading at 49,336.03 down 3.36 per cent in mid-afternoon trade.

The NSE Nifty also fell 270.40 points down at 14,826.95 &nbsp;ahead of December-quarter gross domestic product(GDP) data.

On Thursday, Sensex had surged 257.62 points to finish at 51,039.31 with the Nifty climbing 115.35 points to 15,097.35.

Asian markets showed similar trends on Friday as Tokyo's key Nikkei index tumbled four per cent at the close as blue-chip and tech share were hit hard. Sony, Tokyo Electron, Fast Retailing also dived in Friday's trade.

Hong Kong's Hang Seng index dropped over three per cent while Shanghai also traded lower.

The Dow had earlier dropped 1.8 per cent to 31,402.01, retreating from an all-time on Wednesday. 
&nbsp;

India's benchmark Sensex nosedived 1,000 points in early trade on Friday as bank stocks ICICI and HDFC including Reliance Industries showed negative trend. The Sensex fell further falling over 1,700 points as IndusInd Bank, Axis Bank, and Bajaj Finance dragged down the markets.

India's benchmark Sensex nosedived 1,000 points in early trade on Friday as bank stocks ICICI and HDFC including Reliance Industries showed negative trend. The Sensex fell further falling over 1,700 points as IndusInd Bank, Axis Bank, and Bajaj Finance dragged down the markets. The Sensex was trading at 49,336.03 down 3.36 per cent in mid-afternoon trade. The NSE Nifty also fell 270.40 points down at 14,826.95 ahead of December-quarter gross domestic product(GDP) data. On Thursday, Sensex had surged 257.62 points to finish at 51,039.31 with the Nifty climbing 115.35 points to 15,097.35. Asian markets showed similar trends on Friday as Tokyo's key Nikkei index tumbled four per cent at the close as blue-chip and tech share were hit hard. Sony, Tokyo Electron, Fast Retailing also dived in Friday's trade. Hong Kong's Hang Seng index dropped over three per cent while Shanghai also traded lower. The Dow had earlier dropped 1.8 per cent to 31,402.01, retreating from an all-time on Wednesday.

India's Sensex dives over 1,700 points on global cues

The IMF on Tuesday projected an impressive 11.5 per cent growth rate for India in 2021, making the country the only major economy of the world to register a double-digit growth this year amidst the coronavirus pandemic.

The International Monetary Fund's growth projections for India in its latest World Economic Outlook Update released on Tuesday reflected a strong rebound in the economy, which is estimated to have contracted by eight per cent in 2020 due to the pandemic.

In its latest update, the IMF projected a 11.5 per cent growth rate for India in 2021. This makes India the only major economy of the world to register a double-digit growth in 2021, it said.

China is next with 8.1 per cent growth in 2021 followed by Spain (5.9 per cent) and France (5.5 per cent).

Revising its figures, the IMF said that in 2020, the Indian economy is estimated to have contracted by eight per cent. China is the only major country which registered a positive growth rate of 2.3 per cent in 2020.

India's economy, the IMF said, is projected to grow by 6.8 per cent in 2022 and that of China by 5.6 per cent.

With the latest projections, India regains the tag of the fastest developing economies of the world.

IMF Chief Economist Gita Gopinath, during a virtual press conference to release the WEO update, said that India has somewhat a faster pace of recovery, but cumulatively by the end of 2022, it is nine per cent below its pre-pandemic projected level.

"Cumulatively by the end of 2022, India is still nine per cent below its pre pandemic projected level,"&nbsp;Gopinath said.

"We are seeing India come back to its 2019 levels and 2021, but it's still below. Why do we have these upgrades (in IMF's growth projections for India)....because the activity and mobility particularly came back much faster than expected in India. We have not seen another wave,"&nbsp;Gopinath said.

"In fact, we are seeing a very strong decline in cases, which is again a bit different from other parts of the world. So, these factors, including what we're seeing in terms of high frequency indicators, point to have some what faster pace of recovery. But again, there is still some distance to go,"&nbsp;Gopinath said.

Early this month, IMF Managing Director Kristalina Georgieva had said that India actually has taken very decisive action, very decisive steps to deal with the pandemic and to deal with the economic consequences of it.

India, she said, went for a very dramatic lockdown for a country of this size of population with people clustered so closely together. And then India moved to more targeted restrictions and lockdowns.

The IMF on Tuesday projected an impressive 11.5 per cent growth rate for India in 2021, making the country the only major economy of the world to register a double-digit growth this year amidst the coronavirus pandemic.

The IMF on Tuesday projected an impressive 11.5 per cent growth rate for India in 2021, making the country the only major economy of the world to register a double-digit growth this year amidst the coronavirus pandemic. The International Monetary Fund's growth projections for India in its latest World Economic Outlook Update released on Tuesday reflected a strong rebound in the economy, which is estimated to have contracted by eight per cent in 2020 due to the pandemic. In its latest update, the IMF projected a 11.5 per cent growth rate for India in 2021. This makes India the only major economy of the world to register a double-digit growth in 2021, it said. China is next with 8.1 per cent growth in 2021 followed by Spain (5.9 per cent) and France (5.5 per cent). Revising its figures, the IMF said that in 2020, the Indian economy is estimated to have contracted by eight per cent. China is the only major country which registered a positive growth rate of 2.3 per cent in 2020. India's economy, the IMF said, is projected to grow by 6.8 per cent in 2022 and that of China by 5.6 per cent. With the latest projections, India regains the tag of the fastest developing economies of the world. IMF Chief Economist Gita Gopinath, during a virtual press conference to release the WEO update, said that India has somewhat a faster pace of recovery, but cumulatively by the end of 2022, it is nine per cent below its pre-pandemic projected level. "Cumulatively by the end of 2022, India is still nine per cent below its pre pandemic projected level," Gopinath said. "We are seeing India come back to its 2019 levels and 2021, but it's still below. Why do we have these upgrades (in IMF's growth projections for India)....because the activity and mobility particularly came back much faster than expected in India. We have not seen another wave," Gopinath said. "In fact, we are seeing a very strong decline in cases, which is again a bit different from other parts of the world. So, these factors, including what we're seeing in terms of high frequency indicators, point to have some what faster pace of recovery. But again, there is still some distance to go," Gopinath said. Early this month, IMF Managing Director Kristalina Georgieva had said that India actually has taken very decisive action, very decisive steps to deal with the pandemic and to deal with the economic consequences of it. India, she said, went for a very dramatic lockdown for a country of this size of population with people clustered so closely together. And then India moved to more targeted restrictions and lockdowns.

IMF projects 11.5% growth rate for India in 2021

India’s official GDP data will be released today. Asia’s third- largest economy registered its steepest fall historically in April-June quarter which is also Q1 of current financial year. Though India’s economy is recovering but just how strong the beginning of that recovery has been will be clear when the National Statistics Office releases the July-September quarter gross domestic product data.

All eyes on Q2 GDP data due today

Goldman Sachs revised upwards its FY21 growth forecast for India to a 10.3% contraction, from -14.8% it had projected in September.

World Business Watch: Goldman Sachs raises India's FY21 GDP forecast to -10.3%

The World Bank on Thursday said that India’s GDP is expected to contract by 9.6 per cent this fiscal which is reflective of the national lockdown and the income shock experienced by households and firms due to the COVID-19 pandemic, noting that the country’s economic situation is “much worse” than ever seen before.

The Washington-based global lender, in its latest South Asia Economic Focus report ahead of the annual meeting of the World bank and International Monetary Fund, forecasts a sharper than expected economic slump across the region, with regional growth expected to contract by 7.7 per cent in 2020, after topping six per cent annually in the past five years.

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“India’s GDP is expected to contract by 9.6 per cent in the fiscal year that started in March,” the World Bank said in the report released here.

Regional growth is projected to rebound to 4.5 per cent in 2021, it said.

Factoring in population growth, however, income-per-capita in the region will remain 6 per cent below 2019 estimates, indicating that the expected rebound will not offset the lasting economic damage caused by the pandemic, it said.

“The situation is much worse in India than we have ever seen before,” Hans Timmer, World Bank Chief Economist for South Asia told reporters during a conference call.

“It is an exceptional situation in India. A very dire outlook,” he said.

There was a 25 per cent decline in GDP in the second quarter of the year, which is the first quarter of the current fiscal year in India.

In the report, the World bank said that the spread of the coronavirus and containment measures have severely disrupted supply and demand conditions in India.

With the intent to contain the spread of COVID-19, Prime Minister Narendra Modi, with effect from March 25, announced a nationwide complete lockdown that brought as much as 70 per cent of economic activity, investment, exports and discretionary consumption to a standstill. Only essential goods and services such as agriculture, mining, utility services, some financial and IT services and public services were allowed to operate.

Dubbed as the world’s biggest lockdown, it shut a majority of the factories and businesses, suspended flights, stopped trains and restricted movement of vehicles and people.

According to the World Bank, monetary policy has been deployed aggressively and fiscal resources have been channeled to public health and social protection, but additional counter-cyclical measures will be needed, within a revised medium-term fiscal framework.

Despite measures to shield vulnerable households and firms, the trajectory of poverty reduction has slowed, if not reversed, it said.

“We have seen from the rapid survey that many people have lost their jobs,” Timmer said, adding that this is happening against a background when India’s economy was already slowing down before the pandemic.

“We had seen a rise in non-performing loans. Those are all vulnerabilities that India has to deal with,” he said.

Responding to a question, Timmer said what the Indian government has done with limited resources and limited fiscal space is very impressive.

“We have seen a loosening of monetary policy. You have seen attempts to increase credit to the private sector to help a company survive,” he said, adding that there have been big efforts in the health sector and expansion of a social safety net.

“But with every big crisis, I think, we have to realise that this will not go over anytime soon. And it will actually change the longer-term future also. What this reveals is really as good as federal policies, especially the policies related to the informal sector.

“There’s a big problem that the informal sector has no coverage in social insurance. What we see now is that especially the informal workers in the middle of the income distribution have lost their jobs. There are no systems in place to support those people,” Timmer said.

Responding to another question, Timmer said that as a result of COVID-19, the World Bank estimates that in one year, the number of people living below the poverty line has increased by 33 per cent.

In its report, the World Bank said that the response of the government of India to the COVID-19 outbreak was swift and comprehensive. A strict lockdown was implemented to contain the health emergency.

To mitigate its impact on the poorest, it was complemented by social protection measures; to ensure that businesses could maintain their operations, the Reserve Bank of India and the government also provided liquidity and other regulatory support, it said.

“Nonetheless, there was a massive contraction in output and poor and vulnerable households experienced significant social hardships — specifically urban migrants and workers in the informal economy,” the bank said.

After fiscal 2017, during which the economy grew at 8.3 per cent, growth decelerated in each subsequent year to 7.0, 6.1 and 4.2 per cent.

This was on account of two mutually reinforcing dynamics: emerging weaknesses in non-bank financial companies (a major source of credit growth, making up for risk aversion from banks) and slowing private consumption growth, the bank added.

The World Bank on Thursday said that India’s GDP is expected to contract by 9.6 per cent this fiscal which is reflective of the national lockdown and the income shock experienced by households and firms due to the COVID-19 pandemic, noting that the country’s economic situation is “much worse” than ever seen before.

The World Bank on Thursday said that India’s GDP is expected to contract by 9.6 per cent this fiscal which is reflective of the national lockdown and the income shock experienced by households and firms due to the COVID-19 pandemic, noting that the country’s economic situation is “much worse” than ever seen before. The Washington-based global lender, in its latest South Asia Economic Focus report ahead of the annual meeting of the World bank and International Monetary Fund, forecasts a sharper than expected economic slump across the region, with regional growth expected to contract by 7.7 per cent in 2020, after topping six per cent annually in the past five years. Also read | India to become first country to circulate iodine-based sanitisers “India’s GDP is expected to contract by 9.6 per cent in the fiscal year that started in March,” the World Bank said in the report released here. Regional growth is projected to rebound to 4.5 per cent in 2021, it said. Factoring in population growth, however, income-per-capita in the region will remain 6 per cent below 2019 estimates, indicating that the expected rebound will not offset the lasting economic damage caused by the pandemic, it said. “The situation is much worse in India than we have ever seen before,” Hans Timmer, World Bank Chief Economist for South Asia told reporters during a conference call. “It is an exceptional situation in India. A very dire outlook,” he said. There was a 25 per cent decline in GDP in the second quarter of the year, which is the first quarter of the current fiscal year in India. In the report, the World bank said that the spread of the coronavirus and containment measures have severely disrupted supply and demand conditions in India. With the intent to contain the spread of COVID-19, Prime Minister Narendra Modi, with effect from March 25, announced a nationwide complete lockdown that brought as much as 70 per cent of economic activity, investment, exports and discretionary consumption to a standstill. Only essential goods and services such as agriculture, mining, utility services, some financial and IT services and public services were allowed to operate. Dubbed as the world’s biggest lockdown, it shut a majority of the factories and businesses, suspended flights, stopped trains and restricted movement of vehicles and people. According to the World Bank, monetary policy has been deployed aggressively and fiscal resources have been channeled to public health and social protection, but additional counter-cyclical measures will be needed, within a revised medium-term fiscal framework. Despite measures to shield vulnerable households and firms, the trajectory of poverty reduction has slowed, if not reversed, it said. “We have seen from the rapid survey that many people have lost their jobs,” Timmer said, adding that this is happening against a background when India’s economy was already slowing down before the pandemic. “We had seen a rise in non-performing loans. Those are all vulnerabilities that India has to deal with,” he said. Responding to a question, Timmer said what the Indian government has done with limited resources and limited fiscal space is very impressive. “We have seen a loosening of monetary policy. You have seen attempts to increase credit to the private sector to help a company survive,” he said, adding that there have been big efforts in the health sector and expansion of a social safety net. “But with every big crisis, I think, we have to realise that this will not go over anytime soon. And it will actually change the longer-term future also. What this reveals is really as good as federal policies, especially the policies related to the informal sector. “There’s a big problem that the informal sector has no coverage in social insurance. What we see now is that especially the informal workers in the middle of the income distribution have lost their jobs. There are no systems in place to support those people,” Timmer said. Responding to another question, Timmer said that as a result of COVID-19, the World Bank estimates that in one year, the number of people living below the poverty line has increased by 33 per cent. In its report, the World Bank said that the response of the government of India to the COVID-19 outbreak was swift and comprehensive. A strict lockdown was implemented to contain the health emergency. To mitigate its impact on the poorest, it was complemented by social protection measures; to ensure that businesses could maintain their operations, the Reserve Bank of India and the government also provided liquidity and other regulatory support, it said. “Nonetheless, there was a massive contraction in output and poor and vulnerable households experienced significant social hardships — specifically urban migrants and workers in the informal economy,” the bank said. After fiscal 2017, during which the economy grew at 8.3 per cent, growth decelerated in each subsequent year to 7.0, 6.1 and 4.2 per cent. This was on account of two mutually reinforcing dynamics: emerging weaknesses in non-bank financial companies (a major source of credit growth, making up for risk aversion from banks) and slowing private consumption growth, the bank added.

India's GDP expected to contract by 9 per cent this year: World Bank

The Reserve Bank Of India has announced liquidity measures for banks and NPFC's and now the central bank has forecast a 7.4% GDP growth. Watch report.

RBI governor on revival of economy | India's GDP to grow at 7.4% in 2021-22

India's Gross Domestic Product (GDP) growth for quarter 2 (Q2) slipped to a six-year low, government data showed on Friday. At 4.5 per cent, India's Q2 GDP for the June-September quarter slipped from 5 per cent in the previous quarter of the current fiscal year. India's economic growth was measured at 7 per cent for the July-September quarter a year earlier.

WION Dispatch: India's economic growth at 6-year low

The World Bank said<a href="http://www.wionews.com/india-news/pm-modi-slams-opposition-for-downplaying-world-bank-report-23490"> today that India is expected to grow </a>over 6.7 per cent in 2017 and likely to register higher growth rate than other major emerging market economies in the next decade.

The World Bank <a href="http://www.wionews.com/business-economy/ease-of-doing-business-indias-rankings-zooms-to-100-in-world-bank-report-up-30-places-23243">said as far as the &quot;big picture&quot; </a>was concerned India has &quot;enormous growth potential&quot;.

&quot;In fact, we expect India to do better than its potential in 2018 and move forward,&quot; he said. India&#39;s growth potential, he said, would be around 7 per cent for the next 10 years,&quot; Ayhan Kose, Director, Development Prospects Group, World Bank, told PTI

Kose said in comparison to India, China&#39;s growth was slowing down with India expected to gradually accelerate despite setbacks in demonetization and Goods and Services Tax (GST).

India needs to step up investment in order to leap ahead of China, Klose said, adding that &quot;improved labor market reforms, education and health reforms as well as relaxing investment bottleneck will help improve India&#39;s prospects&quot;.

&quot;In that context, improving female labour force participation rate is going to be important. Female labour force participation still remains low relative to other emerging market economies. Bringing force right now idle outside of the productive activities will make a huge difference,&quot; Klose told PTI.

India needs to step up investment in order to leap ahead of China, Director, Development Prospects Group, World Bank Klose said.

The World Bank said today that India is expected to grow over 6.7 per cent in 2017 and likely to register higher growth rate than other major emerging market economies in the next decade. The World Bank said as far as the "big picture" was concerned India has "enormous growth potential". "In fact, we expect India to do better than its potential in 2018 and move forward," he said. India's growth potential, he said, would be around 7 per cent for the next 10 years," Ayhan Kose, Director, Development Prospects Group, World Bank, told PTI Kose said in comparison to India, China's growth was slowing down with India expected to gradually accelerate despite setbacks in demonetization and Goods and Services Tax (GST). India needs to step up investment in order to leap ahead of China, Klose said, adding that "improved labor market reforms, education and health reforms as well as relaxing investment bottleneck will help improve India's prospects". "In that context, improving female labour force participation rate is going to be important. Female labour force participation still remains low relative to other emerging market economies. Bringing force right now idle outside of the productive activities will make a huge difference," Klose told PTI.

India's 'growth potential' around 7 per cent for next 10 years: World Bank

First, consider the numbers. Between 2003 and 2009, the high growth years of the economy, when GDP grew by 8 per cent per year on average, the number of good jobs, that is, jobs in the formal sector of the economy, grew at not even one-tenth that number. Look at it another way. Every year millions of new aspirants enter the job market to compete for a few hundred thousand new jobs.&nbsp;

&nbsp;

Now let us descend to the ground. We witness enormous agitations for reservations in government jobs rising from traditionally dominant castes, such as Jats, Patels, and Marathas. Even the lowest paid government jobs regularly attract such large numbers of extremely over-qualified applicants that violence ensues in the wake of examinations. Around two weeks ago, in West Bengal, 2.5 million young men and women appeared for an exam for 6000 Group-D positions in the state government. Graduates and post-graduates had applied for these positions which require an elementary school certificate and pay Rs. 16,200 per month.&nbsp;

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<h5>What is the economy for, anyway? It is always a good question to ask whenever we risk getting lost in GDP numbers, policy reforms, and stock market movements</h5>
</blockquote>
</div>

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&nbsp;

One increasingly popular term captures all this: &ldquo;jobless growth.&rdquo; While this phenomenon has been known at least since the mid-1990s, and is observed across the world, it is becoming a hot political issue. And not a day too soon.&nbsp;

&nbsp;

What is the economy for, anyway? It is always a good question to ask whenever we risk getting lost in GDP numbers, policy reforms, and stock market movements. These are all means to an end, viz. enabling all of us to enjoy fulfilling, creative, happy lives. In a market economy, adequate regular money income is a precondition for such a life. Yet our economy continues to deny this precondition to the vast majority of its workers. So, while GDP grows at some of the fastest rates seen across the world, the number of people who are able to enjoy a good life increase at a much much slower rate. And even this increase is very uneven across regions, occupations, castes, genders, and religions with some, like displaced farmers and artisans seeing declines in their living standards.&nbsp;

&nbsp;

Riding a wave of resentment against the previous regime, the Prime Minister himself made jobs a central issue during his campaign. But three years later, not much has changed and the BJP government is being seen as a failure on the job creation front. After several weeks of bad press on this issue, a few days ago, BJP President Amit Shah issued a statement that it was not possible to provide formal sector jobs to everyone in a country of 125&nbsp; crore people. This is a telling as well as an astonishing statement. Telling because it admits to a truth that few would admit to. That under the present set of policies (whether BJP or UPA) universal employment is impossible. Astonishing because for decades the transition to a completely formal economy has been the very definition of development. That we, and many other countries, have failed at acheiving this is surely an indictment of our policies. But are we then giving up on development? Or are we redefining it? And if so how? There is no answer.

&nbsp;

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<h5>Regular salaried workers account for only 20 per cent of all workers in India</h5>
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&nbsp;

The intense hunger for even the lowest paid government jobs comes as no surprise once we take a look at the Ministry of Labour numbers on earnings in the Indian labour market. According to the most recent Employment-Unemployment Survey of the Labour Bureau (2014-2015), regular salaried workers account for only 20 per cent of all workers in India. Earnings from either self-employment or casual wage work (both of which together account for the remaining 80 per cent of the workforce) fall far short of a secure, decent, livelihood.&nbsp;

&nbsp;

Nationally, 67 per cent of households reports monthly earnings of Rs. 10,000 or less. 98 per cent are under Rs. 50,000 per month. Earning over Rs 1 lakh per month puts a household in the top 0.2 per cent of income earners in the country.&nbsp; More than half of the regular wage/salaried workers i.e. 57 per cent have monthly average earnings of up to Rs 10,000, well under the government minimum salary under the 7th pay commission. 59 per cent of the casual workers has monthly earnings of up to Rs 5000.

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<h5>Successive governments at the Centre and in the states have embraced liberalisation and privatisation policies that have failed to generate jobs</h5>
</blockquote>
</div>

<div class="col-sm-1 blockquote-content">
<div class="share-blockquote"><a class="twitter popup" href="http://twitter.com/intent/tweet?text=Successive governments at the Centre and in the states have embraced liberalisation and privatisation policies that have failed to generate jobs" target="_blank">&nbsp;</a></div>
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&nbsp;

Of course, the current government in Delhi must take its share of the blame for the jobs crisis. But there is plenty of blame to go around. Successive governments at the Centre and in the states have embraced liberalisation and privatisation policies that have failed to generate jobs.&nbsp;

&nbsp;

But the problem goes beyond India too. In the 1950s-80s, in Japan, Korea and the other &ldquo;East Asian Miracle countries&rdquo;, rapid GDP growth generated a vast number of jobs. This shifted a predominantly agricultural workforce to manufacturing and services. Not only that, jobs were created in the formal sector.&nbsp;

&nbsp;

In contrast, in India and China, particularly since the 1990s, despite high levels of growth, formal employment generation has been slow. This is a general phenomenon across Asia. Manufacturing, in particular, is a big concern. In the 2005-2011 period, according to National Sample Survey data, manufacturing employment in India increased by 6 million while that in construction increased by 25 million. Construction accounted for half of all new non-agricultural jobs added in this period. The &ldquo;Make in India&rdquo; campaign aims to generate 100 million jobs by 2022 in the manufacturing sector. While the goal is laudable, given trends reported above, this seems unlikely to materialise. And Amit Shah&rsquo;s statement, referred to earlier, seems to indicate that backpedaling on this issue has started already.

&nbsp;

While GDP grows at some of the fastest rates seen across the world, the number of people who are able to enjoy a good life increase at a much much slower rate.

First, consider the numbers. Between 2003 and 2009, the high growth years of the economy, when GDP grew by 8 per cent per year on average, the number of good jobs, that is, jobs in the formal sector of the economy, grew at not even one-tenth that number. Look at it another way. Every year millions of new aspirants enter the job market to compete for a few hundred thousand new jobs. Now let us descend to the ground. We witness enormous agitations for reservations in government jobs rising from traditionally dominant castes, such as Jats, Patels, and Marathas. Even the lowest paid government jobs regularly attract such large numbers of extremely over-qualified applicants that violence ensues in the wake of examinations. Around two weeks ago, in West Bengal, 2.5 million young men and women appeared for an exam for 6000 Group-D positions in the state government. Graduates and post-graduates had applied for these positions which require an elementary school certificate and pay Rs. 16,200 per month. What is the economy for, anyway? It is always a good question to ask whenever we risk getting lost in GDP numbers, policy reforms, and stock market movements × One increasingly popular term captures all this: “jobless growth.” While this phenomenon has been known at least since the mid-1990s, and is observed across the world, it is becoming a hot political issue. And not a day too soon. What is the economy for, anyway? It is always a good question to ask whenever we risk getting lost in GDP numbers, policy reforms, and stock market movements. These are all means to an end, viz. enabling all of us to enjoy fulfilling, creative, happy lives. In a market economy, adequate regular money income is a precondition for such a life. Yet our economy continues to deny this precondition to the vast majority of its workers. So, while GDP grows at some of the fastest rates seen across the world, the number of people who are able to enjoy a good life increase at a much much slower rate. And even this increase is very uneven across regions, occupations, castes, genders, and religions with some, like displaced farmers and artisans seeing declines in their living standards. Riding a wave of resentment against the previous regime, the Prime Minister himself made jobs a central issue during his campaign. But three years later, not much has changed and the BJP government is being seen as a failure on the job creation front. After several weeks of bad press on this issue, a few days ago, BJP President Amit Shah issued a statement that it was not possible to provide formal sector jobs to everyone in a country of 125 crore people. This is a telling as well as an astonishing statement. Telling because it admits to a truth that few would admit to. That under the present set of policies (whether BJP or UPA) universal employment is impossible. Astonishing because for decades the transition to a completely formal economy has been the very definition of development. That we, and many other countries, have failed at acheiving this is surely an indictment of our policies. But are we then giving up on development? Or are we redefining it? And if so how? There is no answer. Regular salaried workers account for only 20 per cent of all workers in India × The intense hunger for even the lowest paid government jobs comes as no surprise once we take a look at the Ministry of Labour numbers on earnings in the Indian labour market. According to the most recent Employment-Unemployment Survey of the Labour Bureau (2014-2015), regular salaried workers account for only 20 per cent of all workers in India. Earnings from either self-employment or casual wage work (both of which together account for the remaining 80 per cent of the workforce) fall far short of a secure, decent, livelihood. Nationally, 67 per cent of households reports monthly earnings of Rs. 10,000 or less. 98 per cent are under Rs. 50,000 per month. Earning over Rs 1 lakh per month puts a household in the top 0.2 per cent of income earners in the country. More than half of the regular wage/salaried workers i.e. 57 per cent have monthly average earnings of up to Rs 10,000, well under the government minimum salary under the 7th pay commission. 59 per cent of the casual workers has monthly earnings of up to Rs 5000. Successive governments at the Centre and in the states have embraced liberalisation and privatisation policies that have failed to generate jobs × Of course, the current government in Delhi must take its share of the blame for the jobs crisis. But there is plenty of blame to go around. Successive governments at the Centre and in the states have embraced liberalisation and privatisation policies that have failed to generate jobs. But the problem goes beyond India too. In the 1950s-80s, in Japan, Korea and the other “East Asian Miracle countries”, rapid GDP growth generated a vast number of jobs. This shifted a predominantly agricultural workforce to manufacturing and services. Not only that, jobs were created in the formal sector. In contrast, in India and China, particularly since the 1990s, despite high levels of growth, formal employment generation has been slow. This is a general phenomenon across Asia. Manufacturing, in particular, is a big concern. In the 2005-2011 period, according to National Sample Survey data, manufacturing employment in India increased by 6 million while that in construction increased by 25 million. Construction accounted for half of all new non-agricultural jobs added in this period. The “Make in India” campaign aims to generate 100 million jobs by 2022 in the manufacturing sector. While the goal is laudable, given trends reported above, this seems unlikely to materialise. And Amit Shah’s statement, referred to earlier, seems to indicate that backpedaling on this issue has started already.

Jobless growth plagues India

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